Considering the swings in volatility, should Bitcoin still be considered an investment?
There isn’t a lot of market history for Bitcoin – we know that. It’s only been around for nine years. But we wanted to take a look at just how much investment returns have been moving around if you’ve been in Bitcoin.
We took a look at short, medium and the longer term, and yes, it was at $10.00 at one point and it got near $20,000 at one point. Now we’re back down to where we once were, about $7,500 – $8,000. If you got in, say three years ago, back in June of 2015, Bitcoin was around $450 a token. That’s in 3 years. So even with the market moves to the downside over the last couple of months in early of 2018, you still have a $10,000 investment at the time worth $170,000 as of yesterday.
We want to then contrast it to the stock market, not because we think they’re comparable in terms of investment or risk or anything else but because other people choose the stock market as a way to invest in anything. Over three years, if you bought the S&P Vanguard ETF, undividend adjusted, just price appreciation, that $10,000 is worth $13,700. That’s pretty good, considering the stock market. We just want to put the context behind the moves we’ve seen.
It also calls into question whether or not you’ve held Bitcoin for a long, long time and whether or not you’re still in it. Because if you watch at the highs, that $10,000 at one point was worth 3/4 of a million dollars and it’s now down to $170,000.
Here are some of the statistics of investments made in Bitcoin today:
There’s a total market value is roughly $350 billion. There are about 20 million Bitcoin wallets with a balance greater than $1. Here’s the breakdown of the worlds Bitcoin wealth by dollar and number of wallets:
- Greater Than 1 USD – 15,505,866 wallets
- Greater Than 100 USD – 5,169,332 wallets
- Greater Than 1,000 USD – 2,032,325 wallets
- Greater Than 10,000 USD – 510,362 wallets
- Greater Than 100,000 USD – 120,593 wallets
- Greater Than 1,000,000 USD – 10,919 wallets
- Greater Than 10,000,000 USD – 1,054 wallets
Bitcoin wallets that are worth $1 million or more own 20% of the entire Bitcoin network. Wallets worth $10 million to $100 million own 38%. And wealthiest individuals that hold $100 million or more own roughly 12% of the worlds Bitcoin wealth.
Plenty of early Bitcoin investors are holding onto their investment. With plenty of new investors coming into the space each day, Bitcoin is still poised to be a great investment opportunity, especially in comparison to traditional options out there. It’s really simple to get started. Visit https://coinjolt.com to get started seamlessly on building your financial nest egg.
Images courtesy of CoinJolt